Weekly review
By Josh White
Date: Friday 19 Dec 2025
(Sharecast News) - The FTSE 100 ended the week up 248.42 points, or 2.57%, closing at 9,897.42 on Friday.
Equity view
Electricity infrastructure firm SSE said on Friday that its majority owned subsidiary SSEN Transmission has inked a £1bn bank facility backed by an £800m financial guarantee from the UK Government's National Wealth Fund. SSE, which owns 75% of SSEN Transmission, said the 12-year bank facility would support four major grid upgrade projects under way in the north of Scotland and has been syndicated to a group of SSEN's relationship banks, led by Bank of America, and including BBVA, HSBC, JP Morgan, Lloyds, MUFG, NatWest and Santander.
Infrastructure group Balfour Beatty has sold Foundry Courtyard, a 536-bed student accommodation building in Glasgow to an undisclosed buyer. After allowing for debt repayment and normal adjusting items, net disposal proceeds to Balfour Beatty are £26m, with the sale generating a profit on disposal of £24m, the company said on Friday.
High street retailer Next has upped its proposed cash return to shareholders but will be doing so by way of a B share scheme, as opposed to a special dividend. The firm had announced in October that it would return surplus cash with a 310p-per-share special dividend by the end of January, but has now proposed a 360p-per-share B share scheme, equal to £421m.
Capita said on Friday that it has secured a £62m contract renewal with a "major" European telecom provider, expanding nearshore delivery and AI-enabled transformation. The four-year contract, which has been secured through Capita's contact centre business, will begin in January 2026.
Land developer Harworth Group has announced 267,000 square feet of industrial and logistics lettings over the second half, cutting its investment portfolio vacancy levels to just 1.0%. The five lettings, all signed on vacant space since 1 July, will result in an additional £2.5m in annualised rental income, some 1.4% ahead of estimated rental values.
Flexible office operator Workspace appointed Tom Edwards‑Moss as chief financial officer designate on Thursday, replacing Dave Benson. Benson, who informed the board of his decision to leave in August, will remain in post until Edwards‑Moss takes up the position following completion of his notice period at Hibernia, with further updates on the timing of the transition to be provided at a later date.
Self-storage company Big Yellow said on Thursday that it has obtained planning consent for a 58,000 sq ft storage centre on its site in Leicester. It expects the new store to deliver an approximately 8.7% net operating income return at stabilisation on the total capital deployed of £13.0m.
Media and hospitality group Time Out said it is taking "swift and decisive" action to improve profitability after results for the fiscal year to 30 June came in below company targets, as the firm announced an £8m placing to help pay for restructuring costs. The group, known for its eponymous hospitality magazine (now published online) and its Time Out Markets across the world, said revenues totalled just £73.2m, down from £103.1m the year before though only slightly below the £78.7m comparative using the group's current accounting policy.
Technical products and services supplier Diploma tapped Wilson Ng to take over as group chief financial officer on Wednesday, effective immediately. Diploma stated that "a comprehensive internal and external selection process" had already been undertaken and that Ng was the stand-out candidate.
US regulators have approved GSK's Exdensur treatment for severe asthma with an eosinophilic phenotype, marking the first ultra-long-acting biologic with twice-yearly dosing for this condition. The Food and Drug Administration's decision was based on clinical trial results which showed a "significantly lower rate of annualised asthma exacerbations" in patients receiving the treatment compared with a placebo.
Distribution and services giant Bunzl reiterated its full‑year profit guidance on Wednesday, despite ongoing macroeconomic challenges. Bunzl said FY revenues were still expected to grow between 2% and 3% at constant exchange rates, but to be broadly flat at actual exchange rates. Underlying revenues were seen as broadly unchanged.
Real estate group Derwent has received a resolution to grant planning permission for a hotel development at Blue Star House in London's Brixton. The 341-room hotel will be located opposite the O2 Academy Brixton in an existing eleven-storey building, and has a total net lettable area of 86,100 sq ft, a 60% uplift from the current floorspace.
The Canadian government has given the green light for Anglo American's $50bn merger with Vancouver-based copper and zinc miner Teck Resources. Canada's Minister of Industry Mélanie Joly granted regulatory approval for the merger of equals, under the condition that the combined group will spend at least C$4.5bn (£2.5bn) in Canada within five years.
Hollywood Bowl reported a rise in annual core earnings despite a challenging backdrop for indoor leisure as customers splashed out on food and drink at its ten-pin centres. Earnings before interest, tax, depreciation and amortisation for the year to September 30 rose 4.2% to £91.2m.
Hotel property developer PPHE has entered into an agreement to refinance the Park Plaza in London's Victoria district. The new £88m facility has been arranged by Santander UK and ABN AMRO as part of an ongoing programme for the long-term refinancing of some of the Group's assets following the successful refinancing of Park Plaza London Riverbank in November.
Rolls-Royce announced plans on Tuesday for a further £200m "interim" share buyback programme. The engine maker, which already completed a £1bn share buyback in November, said the latest buyback will run from 2 January 2026 and complete no later than 24 February 2026.
The chief executive of Hikma Pharmaceuticals has stepped down, it was announced on Monday, just over a month after the blue chip warned on profits. Hikma said Riad Mishlawi - who has been with the generic drugs manufacturer for 35 years, the last two of which as chief executive - was leaving by mutual agreement. He will be replaced by former incumbent and current executive chair Said Darwazah.
UK and Zimbabwe-listed miner Kavango Resources said it is seeking a joint venture partner for its Kalahari Copper Belt mineral portfolio in Botswana. The firm, which is focused on metals exploration and gold production across Southern Africa, said it is "evaluating strategic options" in relation to its KCB interests, though the process remains at an early stage.
Shares in TT Electronics tanked on Monday after major shareholder DBAY Advisors walked away from a possible takeover and reiterated plans to vote against a planned £287m approach by rival Cicor Technologies. The stock soared in October after the Woking-based electronic components manufacturer received a 155p-a-share bid by Swiss outfit Cicor, only for DBAY to voice its disapproval.
Mike Ashley's Frasers Group surged on Monday after announcing a share buyback programme of up to £70m. The company - which owns Sports Direct, House of Fraser and Jack Wills, among others - has entered into an agreement with Barclays to buy up to 10m ordinary shares. The buyback is expected to be completed on 24 April 2026.
Economic news
Bank of England governor Andrew Bailey has warned that the rapid advancement of artificial intelligence will cause labour market disruptions akin to those experienced during the Industrial Revolution. In an interview with BBC Radio 4's Today programme, Bailey said workers need to upskill in order to find employment in the jobs market of tomorrow, saying it would be "a lot easier" for candidates with AI-centred "training, education [and] skills".
Retail sales fell in December as the outlook "darkened", according to the latest Distributive Trades survey released on Friday by the Confederation of British Industry. The CBI's retail sales volume balance was -44, down from -32 in November. Retailers said weak consumer confidence contributed to softer trading conditions in the run-up to Christmas.
Government borrowing hit a four-year low in November, according to figures released on Friday by the Office for National Statistics. Borrowing - which is the difference between total public sector spending and income - came in at £11.7bn, down £1.9bn on November 2024 and the lowest borrowing figure for that month since 2021.
UK retail sales softened in November, undershooting expectations for a small rise, after Black Friday failed to bolster demand. According to data released on Friday by the Office for National Statistics, retail sales volumes were estimated to have fallen by 0.1% on a seasonally-adjusted basis, following an upwardly revised fall of 0.9% in October. Analysts had been expecting a 0.4% uplift.
UK consumer confidence improved a little in December but remained subdued, according to a survey released on Friday by GfK. GfK's long-running consumer confidence index ticked up two points from November to -19, with all five confidence measures higher.
The Bank of England cut the cost of borrowing on Thursday, as widely expected, on the back of better-than-expected inflation data. In a close vote, the rate-setting Monetary Policy Committee agreed to trim the cost of borrowing by 25 basis points to 3.75%, the lowest level since February 2023.
Consumer confidence levels in the UK improved slightly in December but remained in the doldrums, with expected spending across nearly all retail categories in negative territory. The net balance of the British Retail Consortium's Consumer Sentiment Monitor - the percentage of people expecting the state of the UK economy to get better over the coming three months minus those expecting a deterioration - came in at -38% this month, up from -44% in November.
UK house prices softened in October, official data showed on Wednesday, weighed down by weakness in the capital. According to the latest government-compiled data, on average UK house prices dipped 0.1% since September. Year-on-year, house prices rose 1.7%, to £270,000.
Inflation fell by more than expected in November, official data showed on Wednesday, to the lowest level for eight months. According to the Office for National Statistics, the consumer prices index rose by 3.2% in the 12 months to November, down from 3.6% in October. Consensus was for 3.5%.
The downturn in the manufacturing sector eased in December, according to the latest Industrial Trends survey released on Wednesday by the Confederation of British Industry. Output volumes fell in the period but at a slower pace than in November, with a net balance of -21 in December, up from -30. A balance is the weighted percentage of firms reporting an increase and those reporting a decrease.
International events
US consumer sentiment improved in December, according to a survey released on Friday. The University of Michigan's index of consumer sentiment ticked up to 52.9 from 51.0 in November, although it was down from a reading of 74.0 in December 2024.
The Bank of Japan has increased its key interest rate to its highest level in three decades as price rises start to bite consumers. Policy makers voted unanimously to increase the benchmark rate by a quarter of a percentage point to "around 0.75%" on Friday.
Germany's Bundesbank said on Friday it expects "subdued" economic progress in 2026 before a government spending and export strength drives growth higher the following year. "The German economy will make headway again in 2026: while progress will be subdued initially, it will then slowly pick up," said Bundesbank president Joachim Nagel in a statement.
The European Central Bank left its benchmark interest rate unchanged on Thursday at 2%, as widely expected. This marked the fourth consecutive meeting in a row that the Bank held rates.
Manufacturing activity in the Philadelphia region weakened further in December, with the headline index slipping deeper into negative territory and marking the third straight month of contraction, highlighting ongoing softness across the sector. The Philadelphia Federal Reserve's manufacturing index dropped 8.5 points to ‑10.2 in December, down from ‑1.7 in November and below consensus expectations for a more modest decline to ‑3.1.
Americans lined up for unemployment benefits at a decelerated pace in the week ended 13 December, according to the Labor Department. Initial jobless claims fell by 13,000 week-on-week to a seasonally adjusted reading of 224,000, down from the prior week's upwardly revised reading of 237,000 and just below market forecasts of 225,000.
US inflation eased in November, coming in below expectations and hitting its lowest level since July. According to the Bureau of Labor Statistics, the consumer price index slipped to 324.12 points last month, down from 324.80 in September, while annual inflation slowed to 2.7%, below the 3.1% expected by analysts and down from 3% in September.
Norges Bank left its policy rate unchanged on Thursday at 4%, as widely expected. Norway's central bank said in a statement that the outlook is "uncertain", but if the economy evolves broadly as currently projected, the policy rate will be reduced further in the course of the coming year.
Construction output across the eurozone increased to a six-month high in October, according to data out on Thursday from Eurostat, fully offsetting declines the previous month. The construction production index for the single-currency region rose to 103.1 in October, up 0.9% from 102.2 in September, which saw a 0.8% decline.
Sweden's central bank left the cost of borrowing unchanged on Thursday, as widely expected. The first of four central banks due to announce interest rate decisions on Thursday, Riksbank opted to hold the policy rate at 1.75%. The bank said: "The prospects for the Swedish economy are looking brighter. Although it will take time before economic activity returns to normal, the recovery is underway.
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